Loan Consolidation

Federal LoansIf you have borrowed multiple kinds federal student loans,
you may consolidate
them into a new single loan with one monthly payment,
where the payment can be significantly lower than that required under the
usual repayment options. The William D. Ford Federal Direct Loan
Program of the federal government provides the loans. You must consolidate
during your grace period, the time between ceasing at least 1/2 time enrollment
and when your first payment is due.

Most federal education
loans are eligible for consolidation, including subsidized and unsubsidized
Direct Loans and Federal Perkins Loans. Private education loans (alternative
loans) are not eligible for consolidation with your
federal loans. Parent borrowers can consolidate their PLUS loans
if they have borrowered for more than one child.

Before deciding
on applying for a consolidation loan, investigate the regular repayment
options available and fully understand the advantages
and disadvantages of consolidation. Look
into the Interest Rate, Repayment Period, Costs of a Consolidation
Loan among others.

To obtain a complete
list of the federal student loans that can be consolidated and for
complete information on loan consolidation, contact the Direct Loan
Origination Center's Consolidation Department at 1-800-557-7392, or
visit loanconsolidation.ed.gov.